by Jeremy Lim

In 2010, the country pulled out of the recession thanks to tourism and services. The government plants measures to check inflation and reduce the income gap. Together with Malaysia, South Korea and Thailand, Singapore is one of the fastest growing economies in the world.

Singapore (AsiaNews) – Singapore’s economy bounced back in 2010, leaving behind the recession to post 14.7 per cent growth over the whole year. This places it among the world’s fastest growing economies.

The Singapore Exchange closed the year at US$ 658.8 billion, compared to US7.1 billion the previous year. The figure also exceeded the previous peak in 2007, before the latest recession.

The twin engines of manufacturing and services drove growth in the city-state. Tourism was a strong performer, with blue-chip company Genting Singapore, which operates Resorts World Sentosa, the integrated resort that hosts one of two new casinos on the island, posting 76 per cent growth in market value.

However, Prime Minister Lee Hsien Loong cautioned Singaporeans not to expect similar growth in 2011.

“We should rejoice in this exceptional performance, but please remember that it is also the result of special circumstances, and so is unlikely to be repeated soon,” he said.

The government in fact predicts 5 per cent growth for 2011.

Mr Lee said that with rapid growth, Singapore would have to deal with a widening income gap.

He listed a variety of government schemes to help citizens, such as housing grants for the low-income group and lower income tax rates for middle-income earners.

At the same time, the government is investing heavily in education, the prime minister said.

Singapore was not alone in sporting high growth; many other Asian markets did even better, with 19 per cent in Malaysia, 22 per cent in South Korea and a whopping 41 per cent in Thailand.

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• economic
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• tourism
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